ConvaTec CEO Steps Down

Monday, 15th October: After the turbulent week of a global sell-off, this week began somewhat calmer as the blue-chip index opened around 0.1% higher in the morning.

Superdry and ConvaTec were at the very bottom of the FTSE 250 on Monday morning as they both issued warnings with regards to profits and revenue, ConvaTec suffering slightly more with the additional news of the CEO stepping down. The health care equipment manufacturer was trading more than 27.0% lower in the morning, and the casual clothing retailer was down almost 20.0%.

Greencore joined the two at the bottom of the index slightly later in the morning following news of the sale of their troublesome US business to Hearthside Foods for £817 million. The deal also includes a £509 million return to shareholders via a special dividend of 72 pence per share.

Brexit talks dominated headlines today, which took the attention from the blue-chip index. During the talks, Theresa May refused to comment on the Irish backstop and ruled out extending article 50 which would delay Brexit, and hinted that a second referendum might not be completely out of question if MP’s voted down her deal.

At the end of the day, the FTSE 100 managed to hold onto its gains marking its first rise in four sessions and closed 0.48% higher at 7029.